PERSUASION AS IT RELATES TO NEGOTIATION
Campbellsville University
Negotiation and Conflict Management
Dr James F. Laughridge
4/12/2020
Persuasion as it Relates to Negotiation
Definition.
Persuasion and negotiation are two independent words which exhibit a high level of relationship according to (Behrmann, 2016). Persuasion refers to a technique used by people to convince or presenting ideas through a logical way to influence them towards something. On the other hand, negotiation is simply a discussion which is aimed at coming to an agreement.
Summary
In the article, “Let’s make a deal:” Price outcomes and the interaction of customer persuasion knowledge and salesperson negotiation strategies, the authors’ Holmes, Beitelspacher, Hochstein, & Bolander addresses the issue of firms negotiating with the customers on matters concerning prices. The consumers are empowered and frugal, giving most of the business to consumer firm’s authority to negotiate deals with the customers. The input which the seller and the buyer put in the negotiation process determines the outcome or the completion of the sale largely. However, the authors suggested that the negotiation of deals between the customers and the sellers is influenced by the persuasion knowledge of the customer and also the seller’s negotiation strategies. The negotiation strategies help in preventing the crisis or conflict, which may arise in the negotiation process. Based on different research conducted and dynamic data, the outcome of prices and the satisfactory of the customer merely depends on the different interaction of the customer’s persuasion knowledge and the negotiation strategies of the seller or the salesperson (Holmes et al., 2017).
Analysis
Personally, I agree with the author’s opinions in the article concerning the relationship between persuasion and the negotiation in the price outcome. Most of the business across the world always allow customers to negotiate the prices concerning the assumed value of the product. The marked price of different products or deal is still not satisfying to the customer; therefore, there is need to give a room for bargaining or negotiation to reach an agreement of the final price outcome. For a customer to get satisfied with a price outcome, mainly depends on the negotiation strategies which are used by the seller and also the persuasive knowledge of the customer.
According to Peng & Tomizuka (2018, June), negotiation outcome is primarily determined by the seller and the buyer input. Therefore, it is easy to conclude that price or any negotiation outcome primarily depends on the information of the parties involved. The feedback required includes; negotiation strategies and the persuasive knowledge. It is essential as a salesperson or a party involved in the negotiation process to find out the best negotiation strategies which are suitable for the process based on the persuasion knowledge of the other party involved.
I had the experience of a customer and a salesperson negotiating an insurance deal. The customer really had tremendous knowledge about the agreement. The salesperson instead used perfect negotiating strategies which moved the customer. The negotiation process was smooth since the two were trying to reach a collective agreement based on the knowledge they had. Every party was expressing its own opinions towards the matter. However, the two were able to achieve collective bargaining and the price outcome listed for the insurance deal was satisfying to the customer. This can be articulated been due to the persuasion knowledge the customer had and the negotiation strategy used by the customer.
Reference.
Behrmann, M. (2016). Negotiation and persuasion: The science and art of winning cooperative partners. Hogrefe Publishing.
Holmes, Y. M., Beitelspacher, L. S., Hochstein, B., & Bolander, W. (2017). “Let’s make a deal:” Price outcomes and the interaction of customer persuasion knowledge and salesperson negotiation strategies. Journal of Business Research, 78, 81-92.
Peng, C., & Tomizuka, M. (2018, June). Cooperative driving based on negotiation with persuasion and concession. In 2018 IEEE Intelligent Vehicles Symposium (IV) (pp. 1118-1124). IEEE.